Land Resource Misallocation, Upgrading of Industrial Structure, and Common Prosperity

Abstract

China has reached the historical stage of solidly promoting common prosperity. The efficient and fair allocation of land elements has become an important factor affecting common prosperity. Based on the panel data of 30 provinces in China from 2011 to 2021, this paper uses panel fixed effect model, spatial Durbin model (SDM), mediation effect model and other measurement methods to explore the impact and mechanism of land resource misallocation and the upgrading of industrial structure on common prosperity. The result shows that the land resource misallocation significantly inhibits common prosperity and this conclusion is still valid after robustness tests. The mechanism test shows that the land resource misallocation inhibits the realization of common prosperity by hindering the upgrading of industrial structure. When the upgrading of industrial structure is used as a threshold variable, the land resource misallocation and common prosperity has the nonlinear influence characteristics of “inverted U-shaped”. Furthermore, the impact of the land resource misallocation on common prosperity also has a significant negative spatial spillover effect and this indirect effect is greater than the direct effect on the province. Heterogeneity test shows that the land resource misallocation in the eastern region has the most significant impact on common prosperity. The inhibitory effect of land resource misallocation on common prosperity in the post-stage of comprehensive poverty alleviation (2016-2021) is lower than that in the pre-stage of comprehensive poverty alleviation (2011-2015). Based on the research results, this paper puts forward corresponding policy recommendations to provide useful reference for promoting the rationalization of land resource allocation and achieving common prosperity.